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The encyclopedia · Strategy & Leadership · Strategic decision · 2023–2026

Xita Laotaitai — mainland China's 'king of queues' couldn't last 3 years in Hong Kong

A mainland BBQ chain crowned No.1 on Dianping failed in HK in under 3 years. Both stores closed; one was auctioned for unpaid rent.

Xita Laotaitai

What happened

Xita Laotaitai, a mainland Chinese barbecue chain that billed itself as 'the king of queues for grilled meat' and topped the Dianping ratings charts, entered Hong Kong in September 2023 with a flagship store in Tsim Sha Tsui East. A second location in Tseung Kwan O followed. Within 3 years, both were gone.

The Tsim Sha Tsui store closed in the second half of 2025 after its landlord, Wealthy Group, filed a lawsuit in May 2025 seeking three months of unpaid rent totalling approximately HK$918,000. The Tseung Kwan O store lasted a few months longer but was hit with a court auction order in January 2026 — the District Court granted a distraint warrant, and the store's contents were publicly auctioned to recover roughly HK$314,000 in unpaid rent. Less than 3 years after its grand opening, the brand had no presence left in Hong Kong.

Xita Laotaitai had been one of the most hyped mainland restaurant brands to enter Hong Kong during the post-pandemic wave of Chinese food chains testing the market. On the mainland it was a genuine phenomenon — consistently ranking first on Dianping's taste and好评 (positive review) leaderboards for grilled meat. But the brand that conquered the mainland market could not make the economics work in Hong Kong, where rents are higher, competition is fierce, and consumer habits differ from the mainland cities where the chain built its reputation.

The company had publicly denied rent arrears in June 2024, posting on social media that it paid all rent 'on time according to the contract' and calling the rumours 'malicious slander harming the brand's reputation'. The court filings that followed showed the opposite. Separately, the company's director and shareholder, Liu Shengnan, was sued by Wynn Macau for approximately HK$3.14 million in unpaid gambling debts.

Why it happened

  • Xita Laotaitai expanded from mainland China to Hong Kong without a sustainable business model — it could not generate enough revenue to cover rent at its two locations
  • The Tsim Sha Tsui store owed HK$918,000 in rent and the Tseung Kwan O store owed HK$314,000, leading to court action and a public auction
  • The brand's mainland success — built on Dianping rankings, lower rent, and different consumer expectations — did not transfer to Hong Kong's higher-cost, more competitive dining market
  • The company denied rent problems publicly while court filings proved otherwise, suggesting a pattern of financial distress rather than a temporary cash-flow issue
  • Personal debts of the director (HK$3.14 million to Wynn Macau) indicated broader financial troubles beyond the restaurant business
What it cost2 stores; HK$1.23M arrears; auction; out in under 3 yearscostly

The lesson

Being the No.1 BBQ chain on Dianping in mainland China means nothing in a market where the rent alone can consume your entire margin — 'king of queues' is not the same as king of unit economics.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →